The airline was established in March 1995. In June 1997 China Southern Airlines initial public stock offering on the New York and Hong Kong stock exchanges generated over $700 million. In July 2000, Civil Aviation Administration of China (CAAC), announced that it had selected China Southern as one of three airlines to lead the restructuring of China's air transport industry.

It acquired Zhongyuan Airlines on 4 August 2000. In January 2003 the airline absorbed China Northern Airlines and its subsidiaries Beiya Airlines and China Northern Swan, as well as China Xinjiang Airlines, into its domestic operations. In November 2004 the acquisition was completed as China Southern acquired the holding company that owned China Northern and China Xinjiang. In 2004, the company achieved a turnover of around 40 million passengers, becoming one of the top ten passenger carriers in the world.

Among all Chinese airlines, it boasts the largest fleet with the most bases, most extensive domestic networks and highest flight frequencies. Renowned for its excellent passenger services, the airline has won Five-star Diamond Award for flight services and has been honoured as China's best airline by TTG Asia Magazine. It signed a Memorandum of Understanding on August 28, 2004 with SkyTeam Alliance, which it will then be able to join, thus becoming the first mainland Chinese airline to enter a global airline alliance. They are scheduled to join early in 2007.

Members of some SkyTeam mileage program are already able to earn and redeem miles on China Southern and so can members of China Southern Airlines' own frequent flyer programs, the SkyPearl club, for flights on some SkyTeam carriers